Alberta Ends Natural Resource Investment Collaboration with Chinese Fund Amid Rising Tensions

The Alberta government has dissolved a collaboration with Chinese private equity entity Can-China Global Resource Fund (CCGRF), which had earmarked $10 billion for investments in the province’s natural resource sector. The announcement was made by a spokesperson from the non-profit organization Alberta Industrial Heartland.

Established in 2016, the partnership was geared towards facilitating investments across North America, comprised of various major investors including China’s Export-Import Bank, the Vancouver-based mining company Hunter Dickinson, and the Swiss commodity trader Mercuria. The termination of this alliance comes amid rising tensions between China and Canada, but sources could not definitively link the partnership’s end to the strained relationship.

Chinese-Canadian relations started deteriorating in 2018 following Canada’s arrest of Huawei Technologies CFO Meng Wanzhou at Washington’s request. After Meng’s arrest, China incarcerated two Canadian citizens on alleged espionage charges. Although the trio were set free in 2021, the diplomatic tension between the two nations persists.

The CCGRF was formed in 2013, following a bilateral discussion between Beijing and Ottawa, aiming to promote investments from public and private capital into the Canadian natural resource sector. But, thanks to lingering tensions since Meng’s arrest, Canada recently compelled three Chinese state investors to divest from critical Canadian mining companies in an attempt to reduce dependency on China within its vital mining sector. Moreover, Canada has suspended its ties with the China-led Asian Infrastructure Investment Bank (AIIB) amid a probe into allegations that the institution was under the control of the Chinese Communist Party.

The only recorded investment from the CCGRF was a $722 million acquisition of Calgary’s CQ Energy, a private natural gas production services company, in 2017.

Information for this briefing was found via Reuters. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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